Current procedures used for diamond tracking are too much tedious. Separate processes are involved in stock taking, inventory management, sales monitoring make it very inefficient and time consuming. Radio frequency identification (RFID) provides an ultimate, fool proof and advanced solution for diamond manufacturers and traders for stock taking, inventory and sales monitoring. Each diamond packet has a RFID tag inside it with the detailed information about that diamond. A single RFID reader helps reading the tag inside the packet to serve all the purposes. All the system will be supported with the relative software to bring ease into currently used tedious operations. It minimizes the time, cost and persons involved in the processes. RFID tags provide an end to end solution for three processes entirely clubbed together. It offers many advantages as it is cost effective, time saving, advanced and easy to operate and provides multiple solutions with one tag.